Intel’s second-quarter results were flat, driven by strong demand for its PC chips. The company raised its guidance for the rest of the year, but some analysts are disappointed.
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Chip giant Intel, which closed its second quarter with Pat Gelsinger at the helm, reported net income of $5.1 billion on revenue of $19.6 billion. These results are stable compared to those of the same period a year earlier, but better than market expectations and the company’s own forecasts.
The strong performance was mainly in PC chip sales (+6%), while the data center segment was down 9%. Also of note was a 124% growth in revenue generated by Mobileye, the autonomous driving specialist acquired by Intel in 2017.
The chipmaker also raised its full-year forecast. It expects revenue of $77.6 billion (previously $77 billion), as well as adjusted earnings per share of $4.80, (previously $4.60). For the third quarter, the company expects revenue of about $19.1 billion.
Some analysts say forecast increase too low
According to analysts quoted by Reuters, however, these forecasts have disappointed the markets, which were expecting higher expectations in the midst of a shortage of components. Part of the increase in forecasts would also be mainly due to lower interest rates. The last quarter of 2021, which is usually one of the best for the company, could also turn out to be less favorable than expected.
Finally, it should be noted that CEO Pat Gelsinger reiterated, during a conference call following the publication of the quarterly results, that the shortage of electronic components could last until 2023, with the most critical point reached in the second half of 2021.
To try to cope with the shortage of components, Intel plans to build two new plants in Arizona, for 20 billion dollars, and one in Europe. The company could, in addition, get its hands on GlobalFoundries (former foundry of rival AMD) for $30 billion, according to <a href=”https://www.wsj.com/articles/intel-is-in-talks-to-buy-globalfoundries-for-about-30-billion-11626387704″ target=”_blank” rel=”nofollow noopener”>The Wall Street Journal.